Over the last few years, the discount economy has established itself as an integral part of a consumer’s purchasing journey. Marketers have taken advantage of new technologies, e-commerce in particular, and daily deals, flash sales and discount vouchers have become part of a well-rounded and strategic marketing mix.
As the industry matures, sustainability comes sharply into focus; the emphasis is moving away from companies fighting for the most offers, or the biggest database; and instead there is a more collective approach, where relevance and targeting are helping to build business.
The establishment of a trade organisation was a huge step forward for this collective approach. The Global Daily Deal Association (GDDA) was built on the back of the DD Summit Europe, which brought together all of the industry’s key players, for the first time, to discuss the issues we are all facing, and to share best practice.
There has always been furious rivalry in the industry, and we’ve seen mergers and acquisitions designed to grow reach, but there is huge potential for publishers to work together. Companies can build sustainability into their business models by developing strong and strategic partnerships with other, like-minded businesses.
Deal sites have traditionally excelled at sourcing money-saving offers but often rely heavily on affiliates to get those deals in front of a wider audience; likewise, there are established publishers entering the market who have huge reach, but don’t have the sales and sourcing expertise needed to secure the best offers. By sharing these resources companies can work to their strengths, be it their segmented database or their ability to source good quality, local deals on the ground, and profit from them.
Anyone that markets deals to the buying public needs to be in the business of sharing offers if they want to increase reach and revenue. This transactional business between deal platforms provides the same benefits as using affiliates; it is a way to drive additional revenue.
The deal sharing alternative
The NimbleNetwork is the first facilitator of these deal-sharing relationships; it joins the deal-rich with the database-rich to create additional revenue for both parties and offers an innovative alternative to the traditional affiliate model. Any company that offers transactional deals can use the network; it allows deal platforms to work together and could rival the established affiliate button as businesses look for alternative approaches to raising revenue.
Sharing resources is already working for some big brand publishers. Johnston Press’ DealMonster.co.uk and DiscountVouchers.co.uk are already sharing offers through the NimbleNetwork. DiscountVouchers alone have access to over six million consumers, which could be the lifeline that brings profitability to some smaller sites. The key to these relationships is that they are mutually beneficial, so it’s better for the individual deal sites; for the merchants, who sell more offers and have exposure to more potential customers; and for the consumers, who have access to the best deals and more options.
The discount economy had been fast to grow and will continue to evolve, particularly as the technology surrounding it develops; with the advent of superfast broadband and 4G, more people than ever have disposable income literally at their fingertips and deals and discounts have never been more sought after.
Just as the business world has grown to embrace the earning potential and value of social media, so will marketers continue to evolve promotions around deals and offers.